Answer:
Explanation:
Reserve Ratio is the amount of liabilities that are held reserved by the commercial banks. The ratio indicated the amount which the bank has to hold as a reserve. Any amount in access of this ratio can be invested or held in bank reserves.
So in this question, the reserve ratio is 11%, of $132000, which is 14520 dollars. So 117480 dollars are left which can be invested to deposited in the total reserves. So A bank has $132000 in excess reserves and the required reserve ratio is 11%. This means the bank could have $14520 in checkable deposit liabilities and $117480 in total reserves.
Answer:
Progressive because It is a tax in which the tax rate increases as the income increases.
Answer:
B
Explanation:
A. the same amount to every investor regardless of their desired rate of return.
B. the present value of the future income which the stock generates.
C. an amount computed as the next annual dividend divided by the market rate of return.
D. the same amount as any other stock that pays the same current dividendand has the same required rate of return.
the dividend models are used to determine the value of a stock. It is assumed that the value of the stock is equal to the present value of the cash flows or dividends of the stock
The intrinsic value of a stock can be calculated using various dividend models. some of dividend growth models include:
1. The Gordon constant growth dividend model
2. The two-stage dividend growth model
3. The H-model
4. The three-stage dividend growth model
For example, if the dividend of a share in year 1 and 2 is 50 respectively and the discount rate is 10, the present value of the firm =
50 / (1.1) + 50 / (1.1^2) = 86.78
